Daily Tax Update - February 24, 2010

SENATE PASSES $15 BILLION JOBS BILL: Today, the Senate passed, by a vote of 70 to 26, a $15 billion jobs bill. The bill includes payroll tax breaks, bond-financing for state and local infrastructure projects, a small-business expensing provision, and an extension of federal highway programs.

  • Senate Majority Leader Harry Reid said, “I’m encouraged that we were able to pass this fully-paid for, bipartisan bill that will provide an important boost to businesses in Nevada and all across the country and help them hire more workers. This bill has the potential to create and save over a million jobs. I appreciate the support of my Republican colleagues who joined us to support these job creating measures, but I’m disappointed that so many others decided to vote against this bipartisan bill. The American people benefit from seeing Washington work together to address our shared economic challenges. Today’s vote is an important step in our efforts to strengthen the economy this year and we will work to pass additional important job creation measures as soon as possible.”
  • Meanwhile, it appears likely that the tax extenders will be added to a new jobs bill in the coming weeks. Reid has been noncommittal about which extenders would be included in a new bill or when it would be brought to the Senate floor. Senate Majority Whip Richard Durbin said yesterday that the expiring provisions would be extended for one year.

TAX BILLS INTRODUCED FEBRUARY 23rd:
H.R.4655: To amend the Internal Revenue Code of 1986 to provide a 1-year extension of the increased expensing of certain depreciable business assets and the special depreciation allowance for certain business property.
Sponsor: Rep Bright, Bobby [AL-2] (introduced 2/23/2010)      Cosponsors (None)

H.R.4661: To amend the Internal Revenue Code of 1986 to increase the dollar limitation on expensing certain depreciable assets and to extend the deduction for an additional year.
Sponsor: Rep Hodes, Paul W. [NH-2] (introduced 2/23/2010)      Cosponsors (None)

H.R.4663: To amend the Internal Revenue Code of 1986 to provide for a permanent exclusion of all gain on certain small business stock.
Sponsor: Rep Kosmas, Suzanne M. [FL-24] (introduced 2/23/2010)      Cosponsors (None)

S.3018: A bill to amend the Internal Revenue Code of 1986 to make the Federal income tax system simpler, fairer, and more fiscally responsible, and for other purposes.
Sponsor: Sen Wyden, Ron [OR] (introduced 2/23/2010)      Cosponsors (1) 

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

STEPTOE & JOHNSON LLP - TAX PRACTICE
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